Fast forward to today and the currency pair is finding support around the 1.3500 psychological handle that’s just above the area that we’ve identified.
What makes the chart more interesting today is that the 100 SMA has just crossed above the 200 SMA on the 1-hour time frame.
Think dollar traders are ready for a bullish run? A long trade at current levels would give you a good reward-to-risk ratio if USD/CAD ends up making new June highs in the next couple of trading sessions.
If you’d rather buy the Loonie against the Greenback, however, then you can also wait for a clear break below the 200 SMA and then aim for the previous lows near 1.3350.
Good luck and good trading this one, yo!
I spy with my eye a range play in the making! GBP/NZD is consolidating around the 1.9600 major psychological handle, which is right smack at a range resistance on the 1-hour time frame.
If a previous resistance level isn’t enough to make you look closer, then you should know that Stochastic is chillin’ in the overbought region AND is flashing a bearish divergence on the chart. Wowza!
Selling at the first signs of bearish momentum would make for a good trade if you place your stops just above 1.9600 and bet on a return to the 1.9425 range support area.
Think the euro will see an upside breakout instead? Look out for momentum above 1.9600, which could take GBP/NZD to the 1.3700 or the 1.3900 previous areas of interest.
Designed for new and developing traders, MarketMilk™ is a visual technical analysis tool that simplifies the process of analyzing market data to help forex and crypto traders make better trading decisions.
This is the true story of one man, picked to live in front of his computer screen and find ways to make money from trading money. See what happens when markets stop being polite and start being real! Using charts, I show how current currency price action is playing out and chart patterns forming.